Nigeria hits panic button as West Africa logs $2.1bn in suspicious crypto transactions

The increase in questionable cryptocurrency-related activities throughout West Africa has deeply alarmed Nigeria's Securities and Exchange Commission (SEC), as highlighted by its Director-General, Dr. Emomotimi Agama.

• Nigeria SEC raises alarm over increasing cryptocurrency-related fraudulent activities in West Africa.
• GIABA study shows $2.1 billion suspicious cryptocurrency transactions occurred in 2024 within the region.
• Dr. Emomotimi Agama highlights the exploitation by criminal actors due to regulatory gaps and lax compliance.

The Director-General cited a study from the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA), which stated that in 2024 alone, the region saw an astounding $2.1 billion in questionable cryptocurrency transactions.

SEE ALSO: Following an $840 million scam, Nigerian authorities warn of another Ponzi scheme

Speaking at the West Africa Compliance Summit, which was recently held in Praia, Cape Verde, Dr. Agama emphasized that although the adoption of virtual assets is rapidly increasing throughout the continent, the advantages are being eroded by criminal actors exploiting lax regulatory frameworks and compliance gaps.

“DeFi ‘rug pulls’ continue to defraud unsuspecting users. GIABA reported $2.1 bn in suspicious crypto-linked transactions in West Africa in 2024, with terror groups exploiting privacy coins to evade detection,” he stated.

According to the Director-General, as reported by the Punch, significant losses for investors have been brought about by fake crashes, unregistered exchanges skimming funds, and insufficient monitoring.

To plug gaps that criminals take advantage of, Agama indicated the SEC was stepping up its efforts to keep an eye on activity in the digital asset market and emphasized the importance of regional collaboration.

“We must harmonise our regulatory frameworks, share intelligence, and adopt best practices to close loopholes exploited by bad actors. A trader banned in Nigeria simply relocates to Ghana. ECOWAS must adopt a Unified VASP Licensing System,” he stated.

Referencing one of the most pronounced fraud cases in recent years, the director-general revealed that the SEC has inaugurated an awareness program across major cities like Lagos and Abuja to mitigate schemes like CBEX, which defrauded Nigerians of billions of dollars.

CBEX Ponzi scheme

CBEX, a platform claiming to be the China Beijing Equity Exchange, crashed in Nigeria, leaving an estimated 300,000 investors with losses of about ₦1.3 trillion (roughly $840 million).

Investigations indicated that this was a Ponzi fraud, and the real amount lost might be substantially less, approximately $6.1 million.​

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